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Kazakh KazMunaiGas Exploration Production completes share buy back programme

Oil&Gas Materials 7 January 2013 18:33
JSC KazMunaiGas Exploration Production (“the Company” or “KMG EP“) announces that on the 31 December 2012 the share buy back programme is completed, the company said.
Kazakh KazMunaiGas Exploration Production completes share buy back programme

Kazakhstan, Astana, Jan.4 / Trend, D.Mukhtarov /

JSC KazMunaiGas Exploration Production ("the Company" or "KMG EP") announces that on the 31 December 2012 the share buy back programme is completed, the company said.

An aggregate amount is about US$263 million.

"During the whole period of the buy back programme commenced on the 11th of October in 2011, the Company has repurchased 19,461 ordinary shares and 14,386,605 GDRs for an aggregate amount of about US$263 million. As announced earlier, the Board of Directors had approved the buyback programme of its common shares and global depositary receipts (GDRs) up to an aggregate value of US$300 million," the company's press release says.

Shares and GDRs were purchased at the market price.

Announcing a share buyback programme in 2011, the Board of Directors noted that the current market prices of its shares and GDRs do not reflect the true underlying value of the business and its considerable potential based on the current resources, opportunities for business development and stable financial position.

KMG EP is among the top three Kazakh oil and gas producers. Its overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011, was 226mt (1.7bn bbl), including shares in the associates of about 2.1 bn barrels.

The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on the London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The international rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in December 2011.

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